May 2003

Special Report: ACHEMA 2003

World LPG industry moves to a supply-driven market

Changes in regional demands foster reshaping of LPG exports

Whitley, S .C., Purvin & Gertz, Inc.

Over the past 15 years, the global liquefied petroleum gas (LPG)market has grown 2.5 times faster than the petroleum market as developing nations with large populations experienced phenomenal LPG demand expansion in the residential/commercial sector. This growth was triggered by robust economic growth during the late 1980s and throughout the 1990s, thus increasing discretionary income and spending by consumers. As of the spring 2003, this industry is encountering many challenges; some unlike anything that has been experienced before. Many of these factors are cooling LPG demand. Consequently, we ponder where this industr

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